Tony Valeri and Joe Ng: A familiar story
From the Hamilton Spectator:
Hamilton Liberal cabinet minister Tony Valeri more than doubled his money in three months when he flipped a property next to his home to the son of a prominent businessman with ties to the Liberal party.
Valeri, Liberal MP for Hamilton East-Stoney Creek, purchased the property on Ridge Road along the escarpment in upper Stoney Creek for $225,000 last April.
Three months later, Valeri sold the property for $500,000 to John Ng, son of Joe Ng, whose Hamilton-based engineering company has been a longtime supporter of the Liberals at the federal and provincial levels.
From the Union-Tribune in San Diego:
A defense contractor with ties to Rep. Randy "Duke" Cunningham took a $700,000 loss on the purchase of the congressman's Del Mar house while the congressman, a member of the influential defense appropriations subcommittee, was supporting the contractor's efforts to get tens of millions of dollars in contracts from the Pentagon.
Mitchell Wade bought the San Diego Republican's house for $1,675,000 in November 2003 and put it back on the market almost immediately for roughly the same price. But the Del Mar house languished unsold and vacant for 261 days before selling for $975,000.
Now the Hamilton Spectator notes that the Valeri property was assessed at $201,000. On the building permit, the value was listed as $205,000.
It certainly seems like Joe Ng grossly overpaid for the property. One wonders if like Mitchell Wade, Joe Ng is going to take a bath when he tries to sell the property.
But then sometimes you have to spend money to make money. In general, I mean. I'm sure that doesn't apply here. Right.
Just like the conclusion of the Cunningham story is not likely to be relevant either. But for the sake of completeness, here's what happened:
Rep. Randy "Duke" Cunningham tearfully resigned Monday after pleading guilty to bribery and admitting he took $2.4 million to steer defense contracts to conspirators using his leadership position on a congressional subcommittee.
"He did the worst thing an elected official can do - he enriched himself through his position and violated the trust of those who put him there," U.S. Attorney Carol Lam said in a prepared statement.
After the hearing, Cunningham was fingerprinted then released on his own recognizance until a Feb. 27 sentencing hearing. He could receive a maximum sentence of 10 years in prison.
Cunningham agreed to forfeit to the government his Rancho Santa Fe home, more than $1.8 million in cash and antiques and rugs.
Daniel Dzwilewski, the FBI's special agent in charge in San Diego, called the violations "staggering" for a U.S. congressman.
Staggering? I get the feeling that Agent Dzwilewski is easily impressed. In Canadian scams, $1.8 million is a rounding error.
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Comments
Announced by Valeri (on Roy Green's Show on 900 CHML) that Valeri will commence a law suit against the Bourque blog for reporting this story. The fact that Bourque only provided a link to the MSM seems to have escaped Valeri--could it be that it was his home town paper(The Hamilton Spectator) that reported this scandal?
The use of the word 'blog' in this story is an indication that Valeri, by confusing Bourque with a blog says to me that this is the wedge issue that will give the Liberals a reason to shut down blogs.
Posted by: George at January 13, 2006 11:02 AM
As Jon Stewart observed:
Like "Scooter" Libby, Randy "Duke" Cunningham comes pre-nicknamed for prison (or words to that effect).
Perhaps we should start referring to Tony as "Vlad" Valeri right now and avoid the post-trial rush.
Posted by: herringchoker at January 13, 2006 11:39 AM
The really suspicious part of this story is that John Ng bought the house for $500,000 and now the house sits empty while Valeri stores construction materials on it. Who buys a half-million dollar house and lets it sit vacant for months?
Posted by: TimR at January 13, 2006 11:51 AM
C'mon folks obviously JOE NG thinks it's a privilege to live next to Tony Valeri and have such a good neighbour keeping an eye on his home. He must really value the relationship to pay over double the assessment value. It's hard to find good neighbors these days... lol
Posted by: Cheri at January 13, 2006 01:21 PM
We should also think about this.
At best here, Valeri ripped off this old man who was ready to go into a old person home by taking advantage of his good nature. A federal minister wouldn't do something like that surely! ;-)
At worst, this is some dodgy underhanded dealings.
I do know this. I live near that area and I've checked MLS for that street. You need a much newer, larger and bigger property to ASK $500,000!
Posted by: James at January 13, 2006 02:10 PM
The fact that ALL of the info from this article is PUBLIC and the fact that Valeri submitted all of this to the federal ethics commissioner is lost on a lot of people reading this story.
The house, in the shape it is in, is NOT worth $500,000 but the properties in the area (and I live in the neighbourhood) are skyrocketing - the houses sit on the edge of the escarpment and give a great view of Stoney Creek, Lake Ontario and the Toronto skyline.
The real estate in the area is hot.
The story is nothing more than a smear campaign.
Posted by: Justin at January 13, 2006 02:45 PM
Any elected official who pockets $275,000 for a three month investment by selling to a guy who owns a company that does a lot of buiness with government NEEDS to be publicly investigated.
I should add, what part of the fine work of Federal Ethics Commissioner inspires such confidence in you?
I know my favourite ruling was that Paul Martin's role in determining tax haven status for foreign companies was "not a conflict" although his company (CSL) was registered in one of those havens. Did I mention, that was only haven he left open after that decision? How convenient?
Everything is fine....nothing to see here....
Posted by: Matthew at January 13, 2006 04:36 PM
"...I should add, what part of the fine work of Federal Ethics Commissioner inspires such confidence in you?..."
Makes you wonder exactly what the Ethics Commissioners' role is:
Questions raised about land deal
....Federal politicians must place assets such as income properties in trust while holding office. They are allowed to have a mrtgage on one home and a vacation property. Mr. Valeri said he filed the adjoining lot as his recreational land, following advice from the Ethics Commissioner...
http://tinyurl.com/buu75
Posted by: JM at January 13, 2006 05:03 PM
Jason: You honestly think that the profit of $275,000, or 122% in merely 77 days can be attributed merely due to a hot real estate market in the area?
It's too bad that the elderly gentleman hadn't just waited those extra 77 days.
Posted by: JM at January 13, 2006 05:29 PM
Duffy/CTV used the story at 5:00 pm credited Bourque and the Spectator. More developing later maybe.
Posted by: randy at January 13, 2006 06:18 PM
After Jan 23, when Mr Valeri is looking for something to do with his days, perhaps he should consider opening his own REIT (real estate investment trust) I think many people would invest monies with him, knowing what fantastic returns he's provided for himself...
Posted by: Curtis at January 13, 2006 07:22 PM
A very interesting way to make a donation to a Liberal's campaign - circumventing the law?
Posted by: ann at January 14, 2006 09:49 AM
.Hi, my name is Bob, and I am a recovering thinker...
It started out innocently enough: I began thinking at parties now and then to loosen up. Inevitably though, one thought led to another and soon I was more than just a social thinker. I began to think alone, "...to relax..."
I told myself, but I knew it wasn't true. Thinking became more and more important, and finally I was thinking all the time. I even thought on the job. I knew thinking and employment didn't mix, but I couldn't stop. I began avoiding friends at lunch time so I could read Thoreau and
Kafka. I returned to the office dizzied and confused, asking, "What exactly are we doing here?"
Things weren't great at home either. One evening I turned off the TV and asked my wife about the meaning of life -- she spent the night at her mother's.
I soon had a reputation as a heavy thinker. One day the boss called me in and said, "Bob, I like you, and it hurts me to say this, but your thinking is a real problem. If you don't stop thinking on the job, I'll have to let you go." This gave me a lot to think about.
I went home early after my conversation with the boss. "Honey," I confessed, "I've been thinking..." "I know you've been thinking," she said, "and I want a divorce." "But Honey, surely it's not that serious." "It is serious," she said, lower lip quivering. "You think as much as college professors, and college professors don't make any money, so if you keep on thinking we won't have any money!" "That's faulty syllogism," I said impatiently, and she began to cry. I'd had enough.
"I'm going to the library," I snarled and stomped out the door. I headed to the library in the mood for Nietzsche, roared into the parking lot, and ran up to the big glass doors ... they didn't open. The library was closed.
To this day I believe the Higher Power was looking out for me that night. As I sank to the ground clawing at the unfeeling glass, whimpering for Zarathustra, a poster caught my eye. The words "Friend, is heavy thinking ruining your life?" stood out in large letters. You may recognize the line: it comes from the standard issue "Thinkers Anonymous" poster.
Today, I am a recovering thinker. I never miss a TA meeting. At each meeting we watch a non-educational video -- last week it was "Porky's." Then we share experiences about how we avoided thinking since the last meeting.
I still have my job and things are a lot better at home. Life just got easier, somehow, once I stopped thinking. Soon, I'll be able to vote Liberal again.
Posted by: Thinking at January 14, 2006 05:38 PM
5 questions for Valeri to answer should he truely decide to get this thing to court
1. Do you feel you took advantage of an elderly man when you offered him $225,000 for his property without aid of any proprty assessment?
2. Did you feel the property assessment was fair and equitable on the property you purchased?
3. What if anything have you done to apologize to the elderly man you so clearly took advantage of?
4. If you disagree with the premise that you underpaid for the property, what is your explaination for the grossly unreasonable price you recieved from a family member of a political backer?
5. Are you aware that all land transfers are public information readily available to anyone making an inquiry making your suit largely invaid?
Posted by: at January 15, 2006 12:50 PM
I wonder if in 77 days Tony could have had the following done to the property.
1) finished basement/gamesroom added
2) jacuzzi and deck in the backyard
3) pool dug and landscaping completed
4) new shingling, new paint, new furniture
5) a free Porsche for John in the garage
that might have made the price about right.
Maybe I just watch too much "Flip This House" :-)
Posted by: TrustOnlyMulder at January 15, 2006 08:39 PM
 
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